Mr. George Ogilvie reports

ARIZONA SONORAN GRANTED AMENDED INDUSTRIAL AIR PERMIT AND COMPLETES LOCAL POLLING WITH 87% SUPPORT FOR THE CACTUS PROJECT

Arizona Sonoran Copper Company Inc. has received from the Pinal County Air Quality Division an amendment to the industrial air permit. The amended aquifer protection permit has been applied for and is currently under review by the Arizona Department of Environment and Quality (ADEQ).

The amended industrial air permit pertains to a February, 2024, prefeasibility study configuration, which excluded the MainSpring deposit. A subsequent preliminary economic assessment (2024 PEA), incorporating MainSpring, was issued in August, 2024, and supersedes the 2024 PFS. The 2024 PEA contemplates an operation expected to produce 116,000 short tons of copper cathode per year over the first 20 years of a 31-year mine life.

Through regular communication and involvement within the community, the company's transparent approach has contributed to permitting success. Additionally, as part of the continuing community engagement strategy, the company recently completed an updated polling survey demonstrating support for the Cactus project of 87 per cent within Casa Grande and surrounding areas.

Arizona Sonoran president and chief executive officer George Ogilvie commented: "The issuance of the amended industrial air permit is yet another key milestone in the advancement of Cactus, a stand-alone operation requiring only permits from the state and local government as the Cactus project sits entirely on private land with no federal permitting nexus. Cactus is a standout, lower-risk copper asset based on its Tier 1 location, the permitting process, on-site infrastructure, including rail, road, power and water, the sizable copper resource estimate, associated mine plan, related economics and first-quartile capital intensity. Our team has done a tremendous job advancing the asset and navigating the streamlined state-led permitting process. We look forward to continuing to advance towards PFS in H2 2025 and subsequently submitting final amendments ahead of a final definitive feasibility study (DFS) in 2026, project financing, and the construction and development decision. Additionally, we would like to thank Pinal County Air Quality Division and the local communities for their ongoing support for the Cactus project."

Local polling

In October, the company commissioned a poll of 500 frequent voters in Casa Grande and surrounding areas, based on the 2024 PEA mine plan. Polling determined that 86.6 per cent of the survey respondents supported the Cactus project, up from 82.6 per cent in 2021. Notably, Republicans, Democrats, Independents and others indicated a range of support from 76.1 per cent to 93.2 per cent, with an uptick in Democratic support from 67.1 per cent to 76.1 per cent -- a testament to the company's consistent and pro-active approach to being a good neighbour. The positive polling numbers indicate overwhelming support from the community and an affirmation of strong Arizona Sonoran's social licence.

Travis Snider, Arizona Sonoran's vice-president, sustainability and external relations, commented: "Given the recent issuance of the 2024 PEA detailing copper cathode production of 116,000 short tons per annum over the first 21 years of a 31-year mine life predominantly via open-pit mining, it was important to gauge the local communities support for this larger and generational mine plan. Therefore, the updated perception survey was undertaken two months following the release of the 2024 PEA, allowing prior dissemination of the results into the community. The results showed continued strong support for the project, and, specifically, an increase in support to restart production at the project. This is a testament to the great work our project team is doing in Casa Grande and surrounding areas, in keeping the local community informed of our business plans."

Permitting background

Following the initial public offering in late 2021, the company received its initial industrial air and aquifer protection and mined land reclamation permits, for a mine plan envisaging 28,000 short tons per annum of copper cathode with an 18-year mine life, in 2023. Three years later, the scale of the deposit and conceptual production profile grew in the 2024 PFS, largely due to the discovery of the Parks/Salyer deposit. Being awarded an amended industrial air permit pertaining to the 2024 PFS, which contemplated 55,000 short tons per annum of copper cathode production with a 21-year mine life, within four months of having the application administratively accepted is another positive step forward. Although the permit is not for a final mine plan related to a construction and development decision, it is a positive affirmation that being on private land presents a significantly more efficient state permitting regime.

The recent growth reflected in the 2024 mineral resource estimate and project expansion in the 2024 PEA was largely due to the acquisition of the MainSpring property with near-surface mineralization and ultimate rescoping of Parks/Salyer to an open pit from underground mining. Building off the 2024 PEA, a stand-alone Cactus PFS is expected to be issued in the second half of 2025, based on which the company intends to reapply for amended permits that should be well in hand ahead of a stand-alone DFS, planned for delivery in 2026. Assuming the final DFS has robust project economics and project financing has been secured, the project would also be fully permitted for a construction and development decision at that time.

About Arizona Sonoran Copper Company Inc.

Arizona Sonoran is a copper exploration and development company with a 100-per-cent interest in the brownfield Cactus project. The project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open-pit copper mine with robust economic returns. Cactus is a lower-risk copper developer benefiting from a state-led permitting process, in-place infrastructure, highways and rail lines at its doorstep, and on-site permitted water access. The company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The company is led by an executive management team and board which have a long-standing record of successful project delivery in North America complemented by global capital market expertise.

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